The debt collection and debt recovery practice is modernising the world over. But in the midst of so much change it’s important to not annoy your customers in the process. Here we offer up some tips about developing debt collection strategies that will boost your customer service reputation, not damage it:
OMNICHANNEL COMMUNICATIONS
Omni-channel communications are a great way to take an holistic approach to contacting customers who have outstanding debt. Omni-channel communications are consistent, complementary and seamless, which means customers are much more likely to respond to you efforts favourably. Traditional communication methods of placing phone calls and writing letters are not only out of date, but consumers also often find them to be disruptive and annoying. Letters are also sometimes missed entirely, meaning debt is often left unpaid. Instead, through an innovative omni-channel approach, you switch up how you communicate.
A recent ComScore study found that 50% of consumers rely solely on their mobile devices for all of their banking needs. This statistic proves that consumers are comfortable when it comes to pairing their financial lives with their mobile devices. An omni-channel debt collection strategy involves utilising text messaging, email, and chat, in order to gain successful responses. Lateral offers 2 way SMS, Live Chat, and VOIP integration. These are channels that consumers are familiar with. And since all the content of the messages sent can be carefully constructed, controlled and automated, consumers feel much less harangued, and are more likely to respond.
ENSURE YOUR DATA IS UP TO DATE
Another important factor when developing a debt collection strategy that doesn’t annoy your customers is making sure that the data you possess on them is always up to date and accurate. For example, if you contact an individual requesting payment when they have already supplied such payment, your customer service reputation takes a hit.
FOCUS ON THE INDIVIDUAL
Understanding why late payments exist is about treating each customer as an individual. Advanced AI and machine learning processes can focus on pattern recognition – specifically assessing the past behaviour of customers and then predicting likely future outcomes. How likely are they to repay their debt? When might this occur? AI and machine learning have changed the debt recovery landscape through their automated responses; they can predict defaults and refine responses accordingly. The customer’s account receives a more personal touch, which is appreciated, and they are much less likely to default on their payments.
THINK ABOUT YOUR TIMING
It’s important that you effectively and thoroughly communicate with customers who owe you payments. But more importantly you must not harangue or harass. There is a temptation to communicate regularly when chasing payments, but this is not always an effective approach from a statistical perspective. Eventually messages become ‘tuned out’ and individuals ignore the content of your correspondence. Give them time and space to respond to you. This way your information lands with more power. The great benefit of debt recovery and debt collection software which is automated, or enhanced by the processing power of AI, is that correspondence can be sent on your behalf, in the most efficient manner possible.
Get in touch with LATERAL to learn how we can develop the perfect debt collection strategy for your business.